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General situation:
Analyzing the USD/JPY market on March 26 we can see that the price has recently begun the correction forming the new signal for Sell-deals. As a result, the rate reached the lower limit of the Ichimoku Cloud though it has not been overcome yet. The current signal for Sell-deals is confirmed and weak as the Chinkou Span is fixed below the price chart and the price is located in the Ichimoku Cloud. Thus, the target for the prospect descending movement is the first support level 81.51. It is necessary to mention that it will be possible to open the long positions only when the price is fixed blow the Ichimoku Cloud strengthening the current Dead Cross. In case this level has been overcome, the next target will be the second support level 80.68. The downside movement remains relevant as long as the price is below the Kijun-Sen (83.00). In case the price is fixed above this line, the further development of the sellers signal will be questioned indicating a possible reversal of price to upwards. Chinkou Span is located below the price chart indicating the bullish mood on the USD/JPY market. Bollinger Bands points at the descending movement; lines are expanding and directed downwards. Therefore, short positions are considered as relevant. MACD is directed upwards indicating the current corrective movement. You cannot open the short positions now but when the lower limit of the Ichimoku Cloud has been completed it will be possible to resume trade when the rate is fixed below it.
Trading recommendations:
On the USD/JPY market today it is recommended to consider the Sell-positions with the level 81.51 seen as target but only when the price is fixed below the Ichimoku Cloud. If this level has been broken through, the next target will be seen at the 80.68 level. Stop Loss is to be placed above the 83.00 level. As this line moves downside, Stop Loss can be replaced downwards. While opening the short positions MACD should indicate the descending movement. When the price passes 30-40 pips to the required side, Stop Loss can be replaced to the non-loss area. Take profits are to be set at levels 81.60 and 80.80.
Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.
Explanations to the picture:
Ichimoku Indicator:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
Bollinger Bands:
3 yellow lines
MACD Indicator:
Red line and the histogram with white bars in the indicators window.
